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CIMA F1 exam : Financial Reporting

F1 Exam Simulator
  • Exam Code: F1
  • Exam Name: Financial Reporting
  • Updated: Sep 11, 2026
  • Q & A: 247 Questions and Answers
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CIMA F1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Financial Reporting Fundamentals- Regulatory Framework
  • 1. Conceptual framework for financial reporting
    • 2. International Financial Reporting Standards (IFRS) principles
      - Financial Statements Preparation
      • 1. Statement of cash flows basics
        • 2. Statement of profit or loss and other comprehensive income
          • 3. Statement of financial position
            Topic 2: Accounting Standards Application- Basic application of IFRS standards
            • 1. Revenue recognition principles
              • 2. Inventory valuation methods
                Topic 3: Financial Statement Analysis- Performance analysis
                • 1. Trend analysis
                  • 2. Ratio analysis
                    - Interpretation of financial information
                    • 1. Assessment of profitability and liquidity
                      • 2. Limitations of financial statements

                        CIMA Financial Reporting Sample Questions:

                        Question #1
                        Question #2

                        On 1 May 20X8 DEF enters into a contract to lease plant with a fair value of $200,000. Annual lease payments of $50,000 are to be paid in advance and DEF incurred direct costs to arrange the lease of S2.000 The present value of future lease payments at 1 May 20X8 is $190,000.
                        What is the amount to be recognised as a right-of-use asset on 1 May 20X8?

                        • A. $200,000
                        • B. $240,000
                        • C. $242000
                        • D. $192 000
                        Reveal Solution  Discussion  0

                        Correct Answer: C  🗳️

                        Question #3

                        In most developed countries employers deduct the tax from employees' pay each month and then pay the tax to the tax authorities on behalf of the employee on a monthly basis.
                        Which THREE of the following are advantages of this system to the employee?

                        • A. The tax is collected earlier than systems that assess earnings at the end of the year.
                        • B. The payment of tax is easier as the tax is deducted before the net salary is paid to the employee.
                        • C. Most of the administration costs are borne by the employees.
                        • D. There is less chance of interest and penalties being levied on the employee by the tax authorities.
                        • E. The responsibility for the tax calculations rests with the employer and therefore there is less chance of mistakes being made.
                        Reveal Solution  Discussion  0

                        Correct Answer: B,D,E  🗳️

                        Question #4

                        CDE has been offering its customers a 50-day credit period, but now wants to improve its cash flow.
                        CDE is proposing to offer a 2% discount for payment in 20 days. "
                        Assume a 365-day year and an invoice value of $100
                        Which of the following is the effective annual interest rate CDE will incur for this action?

                        • A. 27.9%
                        • B. 49.8%
                        • C. 15.9%
                        • D. 44.6%
                        Reveal Solution  Discussion  0

                        Correct Answer: A  🗳️

                        Question #5

                        An entity purchased an asset on 1 April 20X4 for $320,000, exclusive of import duties of $32,000.
                        The entity sold the asset on 31 March 20X9 for $480,000 incurring legal fees of $12,000.
                        The entity is resident in Country Y where chargeable capital gains are taxed at 20% and no indexation is allowed.
                        Calculate the amount of capital tax that the entity is due to pay.
                        Give your answer to the nearest whole $.

                        Reveal Solution  Discussion  0

                        Correct Answer:

                        $23200

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